The Tamil Nadu Government has reiterated its demand to the Centre to reconsider its decision to divest a 5 per cent stake in Neyveli Lignite Corporation.
The Chief Minister, J. Jayalalithaa, in a letter to the Prime Minister Manmohan Singh expressed a ‘deep sense of disappointment and dismay’ over the Central Government’s decision to proceed with the disinvestment and the Cabinet Committee on Economic Affairs clearing the proposal.
The Centre appears to have disregarded the State Government’s demand to retain the public sector nature of Neyveli Lignite, the largest Central Public Sector Undertaking in the State. Jayalalithaa pointed out that in her previous letter in May she had suggested two alternatives -- Neyveli Lignite can be delisted after buying back the 6.44 per cent public stake or the Securities Contracts (Regulation) Rules, 1957, can be amended to make a special exemption by with an appropriate provision under Rule 19(2)(c).
She said in the letter today “The Government of India appears to have placed the immediate possibility of raising just Rs 466 crores by the sale of shares, above the aspirations of the people of Tamil Nadu to maintain intact the public sector character of NLC without any dilution. I wonder whether even the timing of the decision is well-advised given the recent fall in the share markets and whether the true value of the shares of a profitable Navaratna Public Sector Enterprise will be realised by the Government of India. The future should not judge the Central Government as having sold family jewels at throwaway prices.”
The Trade Unions in Neyveli Lignite have announced plans to protest the proposed disinvestment. “The Central Government’s hasty and poorly reasoned actions have left the Government of Tamil Nadu facing entirely avoidable potential labour unrest which could further exacerbate the difficult power situation in the State.”